Tuesday, October 27, 2020

The Sale of Goods Act imposes terms relating to goods matching samples or descriptions, and meeting standards of fitness, quality, and title. Explain the nature of these implied terms and their effect on the parties. Indicate which terms are conditions

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With respect to the implied term relating to description, the Sale of Goods Act (SGA) states that, when a sale is accomplished by description, there is an implied condition that the goods delivered must correspond with the description or illustration provided. This includes the sale of all manufactured goods, even when sold in a self-serve context, because the consumer must rely on the description provided by the manufacturer in order to assess the goods and make a decision to purchase. This implied term signifies that the manufacturer must ensure that the description associated with a given product accurately represents the product in question. As for sale by sample, the SGA asserts that there is an implied condition that necessitates that the goods purchased correspond with the sample and that they not have any considerable hidden defects that would have influenced the consumer not to purchase them at the agreed upon price had he or she been aware of the defect. (In other words, there is an implied condition that the goods must be of merchantable quality.) However, had the defect been detectable upon examination of the sample, this sale by sample condition would not apply. Manufacturers can over-ride the implied condition relating to sale by sample with carefully worded clauses, such as warranties, unless such over-riding is prohibited by statute. Otherwise, the manufacturer has a duty to ensure that the products sold are of merchantable quality. As for the implied term relating to fitness and quality, again, the SGA states that the goods must be of merchantable quality but also that the goods must be suitable for the purpose for which they were purchased. This is a condition and it is met if the buyer notifies the seller about the purpose for which the goods will be used, the buyer relies of the seller's expertise, and the seller sells the goods in question in its normal course of business. This condition of fitness and quality does not apply when the goods are bought according to brand or trade name. The implied term of the SGA relating to title states that the seller must convey good title. Meaning, the seller must actually have the right to sell the goods. The seller must also provide quiet possession of the goods to the buyer. Meaning, a third party will not interfere with the buyer's enjoyment of the goods he or she purchased. The implied term relating to title is a warranty.


An implied warranty in the SGA is a minor, non-essential term of the contract. Its breach does not liberate the injured party from the rest of the contractual obligations. (In other words, it does not give the victim the right to terminate the contract.) On the other hand, a condition is an essential term of the contract. The breach of an implied condition permits the victim to treat the contract as invalid because the breach affects the very basis of the contract. In the context of this question, in the SGA, the implied terms that are warranties are those relating to title while the implied terms that are conditions are those relating to description, sale by sample and fitness and quality.


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